If you examine American trade policy in recent years you'll quickly realize that the agreements we entered into are nothing more than management agreements which allow the cheapest producer country to be the victor.

Regardless of how one may interpret the substance of our policy, the net result is , as the statistics clearly indicate, lost jobs, lower incomes and a contracting economy. The jury is no longer out, this is just the sad but simple fact.

We should not waste time arguing the fact the U.S. has been the net loser although I assume there may be some that care to do so-- even while we continue to crash and burn.

Our banking system needs Americans to earn enough to fuel growth. It used to be borrow enough, but now it is earn enough. Big difference.

Not only is this not happening, but millions more will lose their jobs, homes and life savings within the next two years. Others who were reasonably well healed will probably see an additional 30 percent of their net worth evaporate into thin air-- or maybe worse. In the past, enthusiastic hype would allow for the elevation of confidence levels and spur economic growth through spending.

This posturing doesn't work today because the net does not trickle down to our economy, it rushes out of our country. The way our current economic structure, or what's left of it, has worked is through borrowing money and purchasing products made overseas. Our overseas partners would then lend us money to continue to do this. For anyone to think this economic model can sustain indefinitely is beyond any scope of reasonable comprehension.

If we go with the possibility that somehow the American people can be physiologically swayed into believing that things will get better, whatever hypnotic remedy we incorporate must result in jobs being created before the stock market can react positively. But, where are the jobs?. Health care, government, education? Low end service?

To me it's pretty simple. All one has to do is look at the companies that make up the Dow Jones and it is not difficult to figure out.

For any of these companies to re-establish to their previous levels Americans must first earn money. The old model that has been pushed for the last 30 years is no longer germane. We as a government and as a people have borrowed ourselves into oblivion. The four or five banking/financial companies on the Dow, we may as well just write off for now.

But look at some of the others: Walt Disney, Home Depot, General Motors, DuPont, Alcoa, Boeing and even Coca Cola. Can they possibly stage a comeback when America's economic infrastructure and wealth producing sectors have been shifted to the cheapest producer? If so, how?

With the American economy hollowed out by bad trade deals, and the days of borrow and spend dead, how can there be any hope that the stock market can rebound within a reasonable time? Does anyone truly believe that anything can happen before Americans get back to work? Truly a chicken and egg argument.

My point is consumer confidence starts when the consumer gets up in the morning and drives to his job with the confidence that his company will not be moving operations to another country, or will not be closing due to cheap imports.

We lost 4.2 million manufacturing jobs during the past 8 years. These jobs didn't really die off, they are alive and well in other parts of the world where they can be produced at wages our people earned in the 1920's. Yes, this is reality. And no, we cannot compete on this level.

So, here we are. The true catalyst or hope of a healthy economy has run its course. Sure our government will continue to rescue the thieves but the victims of our corporate managed government, in the end, are the only hope that the thieves have to stay in business.

I would not put a lot of stock in the American middle class rising from the dead anytime soon. In the end, Wall Street is in for a very rough time.